Apple has officially scrapped its enterprising project to develop augmented reality (AR) glasses, marking a meaningful retreat from the VR/AR space. According to a report from Bloomberg’s Mark Gurman, the company has abandoned its efforts to create AR lenses that would have competed with Meta’s Ray-Ban smart glasses. This decision comes in the wake of the underwhelming commercial performance of the Apple Vision Pro headset, raising questions about Apple’s ability to innovate in this rapidly evolving market.The project, internally codenamed N107, was never publicly announced but aimed to produce sleek, tech-equipped glasses that resembled ordinary eyewear. These glasses were designed to offer augmented reality features, displaying information visible only to the wearer. Initially, the product was intended to connect to an iPhone, but this plan was abandoned due to the excessive processing power demands that strained the device and drained its battery. Apple then pivoted to pairing the glasses with Mac devices, but the project continued to fall short in testing, leading to its cancellation earlier this week.
This move signals Apple’s tacit admission that it has struggled to make a meaningful impact in the VR/AR arena.The Apple Vision Pro, launched in 2023, was a technical marvel but failed to gain traction due to its limited use cases and prohibitive $3,499 price tag. Throughout 2024, Apple repeatedly revised its sales projections downward, ultimately settling on an estimated 500,000 units sold. Despite its advanced features, the device lacked the momentum needed to become a mainstream success.
In contrast, Meta has found a winning formula with its AR glasses. The company’s collaboration with Ray-Ban resulted in the sale of over one million Smart Glasses in 2024, as reported by The Verge. Priced at a more accessible $300, these glasses have resonated with consumers, though Meta’s Reality Labs division still faces financial challenges, losing $5 billion in the fourth quarter of 2024 while generating only $1.1 billion in revenue. Despite these losses, Meta remains committed to the wearables market, with CEO Mark Zuckerberg envisioning the sale of “billions of AI glasses” in the future. The company is also developing Oakley-style AR glasses for athletes and a next-generation Ray-Ban model called Hypernova, which will feature a heads-up display.
Apple,on the other hand,appears to be regrouping. The company is reportedly working on follow-up concepts for the Vision Pro and exploring an AirPods model equipped with cameras, as detailed by Bloomberg. Though, these efforts seem more experimental than strategic, leaving industry observers to wonder whether Apple has a clear vision for its future in the wearables market.
Key Comparisons: Apple vs.Meta in the AR/VR Space
Table of Contents
| Aspect | Apple | Meta |
|————————–|—————————————————————————|————————————————————————–|
| Flagship product | Apple Vision Pro ($3,499) | Ray-Ban Smart Glasses ($300) |
| Sales Performance | 500,000 units sold (2024) | 1 million units sold (2024) |
| Market Strategy | High-end, niche focus | Affordable, mass-market appeal |
| Future Projects | Vision Pro follow-up, camera-equipped AirPods | oakley-style AR glasses, Hypernova |
| Financials | Struggling to gain traction | Significant losses but strong sales momentum |
As the AR/VR landscape continues to evolve, Apple’s decision to step back from AR glasses underscores the challenges of balancing innovation with market viability. Meanwhile, Meta’s aggressive push into wearables positions it as a formidable player in this space, even as it navigates financial hurdles.The race to dominate the future of augmented reality is far from over, but for now, Meta appears to be leading the charge.
Interview: Insights on Apple and Meta’s AR/VR Strategies
Editor: The recent cancellation of Apple’s AR glasses project has sparked a lot of discussion. Can you elaborate on why Apple struggled in this space?
Guest: Absolutely. Apple’s foray into AR/VR with the Apple Vision Pro was undeniably aspiring, but it faced meaningful hurdles. The device, while technically remarkable, was priced at $3,499, making it inaccessible too most consumers. Additionally, it’s limited use cases and lack of compelling content hindered its ability to gain mainstream traction. Despite multiple downward revisions in sales projections, Apple only managed to sell an estimated 500,000 units in 2024. These factors ultimately led to the project’s cancellation, signaling Apple’s struggle to make a meaningful impact in the AR/VR market.
Editor: How does this compare to Meta’s approach in the same space?
Guest: Meta has taken a vrey different approach. Their collaboration with Ray-Ban resulted in the sale of over one million Smart Glasses in 2024, as reported by The Verge.Priced at $300,these glasses are far more accessible to the average consumer,which has helped Meta build significant momentum.While Meta’s Reality Labs division still faces financial challenges—losing $5 billion in Q4 2024 while generating only $1.1 billion in revenue—they remain committed to the wearables market. CEO Mark Zuckerberg envisions the sale of billions of AI glasses in the future, and they’re already developing next-gen models like the Hypernova and Oakley-style AR glasses for athletes.
Editor: What’s next for Apple in the wearables market?
Guest: Apple appears to be regrouping. They’re reportedly working on follow-up concepts for the Vision Pro and exploring an AirPods model equipped with cameras, as detailed by bloomberg. However, these efforts seem more experimental than strategic, leaving industry observers uncertain about Apple’s long-term vision in the wearables market.
Editor: How would you compare the two companies’ strategies and performance?
guest: The key difference lies in their market strategies. apple has focused on high-end, niche products like the vision Pro, which struggled to gain traction due to its premium price and limited use cases. Meta, conversely, has pursued affordability and mass-market appeal, as seen with their Ray-Ban Smart Glasses. While Meta faces financial losses, their strong sales momentum and aggressive investment in next-gen wearables position them as a leader in the AR/VR space. Apple, meanwhile, seems to be in a transitional phase, with no clear roadmap for revival in this arena.
Key Takeaways
Apple’s cancellation of its AR glasses project highlights the challenges of balancing innovation with market viability. The Vision Pro’s high price and limited use cases hampered its success, while Meta’s affordable Ray-Ban Smart Glasses have resonated with consumers. Meta’s aggressive push into wearables, despite financial challenges, positions it as a dominant player in the AR/VR space. Apple’s future in this market remains uncertain as it explores experimental concepts without a clear strategic direction.
